Citibank analysts raised their 3-month gold target to $ 1,825. A new dollar high in gold prices is not expected until 2021.
The record bull market stretches on and the coronavirus outbreak incites fears of a potential slowdown in global growth. Gold could be a way for investors to hedge risks to the downside, Citi said Wednesday.
The firm believes market jitters will prompt investors to pile into the so-called safe haven asset, pushing gold prices to $2,000 per ounce in the next 12 to 24 months.
Good gold summer?
The gold price in US futures trading has crossed the $ 1,800 / ounce mark again for the first time since 2011. At the spot market we are still waiting for this level to return. After several major banks have already raised their gold forecast, Citibank is now following suit. This reports FX Street.
Citi had forecast an average gold price of $ 1,715 for the first half of the year. Now, $ 1,825 an ounce is expected within three months. The bank is sticking to its bullish outlook and expects a new all-time high at $ 2,000 in the coming year. According to the report, Goldman Sachs also expects a new record in the medium term.